- Despite the 2022 crypto crash, the Standard Bank Group supported the CBDC initiative in Africa.
- In 2021, the Standard Bank Group successfully trailed a stablecoin with Korea’s Shinhan Bank.
- South Africa recently set the pace of Web3 adoption by legally viewing cryptocurrency as a financial product.
The global Web3 industry is currently in a mixed state of progress and regression. The crypto market is regaining its former growth as the value of cryptocurrency improves ever-so-slightly, shedding a positive light on its adoption rate. However, amid progress, the market is under consistent attack from crypto regulators trying to “stabilize” unclear crypto regulation. Amid the chaos caused by the growth of the web3 adoption rate and the innumerable lawsuits against crypto platforms, a ray of hope shines on Africa’s crypto journey. Standard Bank Group, Africa’s largest bank, has officially announced its initiative to take a step further in cryptocurrency. Its traditional banking systems have served Africa quite well, but with the rise of crypto-payments systems, change is inevitable.
The Standard Bank Group has unveiled its intent to monitor the current trajectory of digital currency while being mindful of the industry’s current predicaments. This begs the question; will Standard Bank Group unveil new crypto-payment systems?
Standard Bank Group advocates for crypto
The Standard Bank Group has been an avid advocate of crypto since its golden age. Currently, the Standard Bank Group Headquarters in South Africa is officially Africa’s largest bank as of 2021. According to Statista, the bank has a total asset worth nearly $171 billion and operates in 20 African countries. In addition, it has led the banking sector with tier-one capital. Its sheer volume and influence are one of the main reasons why Africa’s largest bank took a positive outlook on crypto payment systems.
The Standard Bank Group is one of the few African banks that have taken steps to promote web3 adoption in Africa. Among its first projects, Africa’s largest bank issues a new private permission decentralized payment offering. The new system aimed at increasing international payments in speed, transparency, and efficiency. Richard de Roos, Head of Foreign Exchange, once announced a new blockchain-based project. This new system would incorporate its foreign currency trading app Shyft and would integrate end-to-end blockchain solutions for the bank.
Despite the 2022 crypto crash, the Standard Bank Group supported the CBDC initiative in Africa. Chief Executive Sim Tshabalala expressed great support for this digital currency. Although, he hinted at the need for a strong regulatory system. Aside from its attempts at improving Africa’s web3 adoption rate, the bank has supported several international crypto ventures.
In 2021, the Standard Bank Group successfully trailed a stablecoin with Korea’s Shinhan Bank. During the Standard Bank Africa Central Banking Conference, Tshabalala significantly hinted at his support for digital currency. He said,” Retail CBDCs have a significant role to play in society, for example, by helping to enhance financial inclusion and fight tax evasion and other financial crimes. They could exploit the self-verifying properties of blockchain to simplify interbank clearing.”
Standard Bank Group is keen on monitoring the crypto market.
As Africa’s largest bank, it was only a matter of time before it noticed Africa’s current crypto trading volume. The bank has released an official notice on its intention to monitor the crypto market in the hope of interacting with the franchise. Lungisa Fuzile, CEO of its South African branch said, “We are genuinely interested, we manage our explorations carefully, we do them with heightened interest when we collaborate with our regulators and other banks in the system to understand them better.”
Currently, South Africa is among the top countries on the continent that have significantly adopted cryptocurrency. For instance, South Africa recently set the pace of Web3 adoption by legally viewing cryptocurrency as a financial product. Through years of steadily supporting and encouraging its crypto industry, the South African government has achieved what many developing and developed countries have sought.
Unfortunately, the timing between such and milestone coincided with the collapse of the crypto market. Its effect brought about plenty of adverse effects that have shunned many from interacting with any crypto platform. In South Africa, despite having a high crypto trading volume, many lenders have declined to provide banking services to crypto platforms.
This has caused a significant drawback for the government’s initiative to adopt digital currency. Fortunately, Standard Bank Group has advocated and is willing to give Africa’s crypto market a chance. The follow-up on the crypto market will set gears into motion, hopefully reviving its former glory.
Many initially believe that the rapid web3 adoption rate is a threat t traditional banking systems. Fortunately, this is far from the truth, as developers consistently find ways of merging crypto payment and traditional banking systems. Africa’s fintech industry is a practical example of such a merger. Today, banks like; Eco-Bank. United Bank of Africa, Barclays Bank and many more have formed partnerships with several high-end crypto payment systems.
As Africa’s largest bank announces its new take on the crypto market, it sheds a ray of hope for crypto enthusiasts and traders. Several organizations, payment systems and banks have formed crypt partnerships to salvage and profit from the market. Bitcoin has gradually gained value from $16000 to $30000, at the time of writing. Its value increase has rippled throughout the market, reviving several altcoins along the way. Its positive take has lured in the Standard Bank Group, and if it continues to progress, we may see a transfer from traditional banking systems to crypto-based systems.